Samsung Sees Profits Increase Due to Sales of Galaxy S21 and Gadgets

Samsung’s profit has risen sharply in the first quarter of 2021. This was partly because the smartphone maker launched the top model Galaxy S21 early in the quarter.

More gadgets were also sold.

Samsung had previously warned against a declining profit in the first quarter because it took into account weaker demand due to the corona crisis. Instead, the economy is recovering faster than expected. Also, the prices of the chips that the company makes are rising due to a worldwide shortage.

Samsung also suffered a power grid failure due to severe winter weather at a chip factory in the US state of Texas in February. As a result, production at the factory in Austin was halted for more than a month. According to analysts, that could have cost the company up to 230 million euros.

The South Korean electronics company posted an operating profit of 9.3 trillion won (7 billion euros) in the first quarter. That is 44 percent more on an annual basis. Later this month, Samsung will come up with final results and will announce, among other things, the net profit.

The company then provides a more detailed insight into how the various divisions have performed. Samsung’s sales in the first quarter were 65 trillion won, 17 percent more than in the same period last year.